Spectrum Net is the official owner of Orbitel

Today the deal of the acquisition of Orbitel from Spectrum Net was finalized. The official documents for the closing of the transaction were signed by Theodore Zahov, Executive Director of Spectrum Net and Magyar Telekom. The shares of Orbitel were transferred to the new owner and the amount of the deal consisting of close to 5 mln. EUR was paid.

The deal is the first step towards consolidation of the alternative telco market, which actually leads to the appearance of the biggest alternative telecommunication operator in the country, providing data and voice transfer services to business customers, fixed-line telephony and internet access for residential consumers.

The integration process between the two companies will be completed within the next 3 months. The two companies will service in total above 6 000 of the biggest business customers and will expand the national coverage of the provided converged telecommunication solutions. The deal provoked a strong interest among the big companies and bank institutions, which see an alternative to the existing telecommunication providers in the country. Spectrum Net has the intention to continue with the consolidation and is already in the process of examining options for future acquisitions of one to three potential targets.

"The acquisition of Orbitel is sharply increasing our opportunities in terms of the telecommunication services offer. The knowledge, qualification and the proved reputation added will support the fulfillment of our strategy for creating the most successful alternative operator in the country and in the region. We have the resources to continue the process of consolidating the Bulgarian alternative telco market”, comments Theodore Zahov, Executive Director of Spectrum Net and Orbitel.

Sales and marketing Director of the new formation will be Ralitza Kilian – Sales Director of Spectrum Net for many years, and Technical Director of the two companies – Radoslav Velev. The members of Orbitel's Board of Directors will be Valentina Daskalova– Finance Director and Rosen Kolarov – Director Infrastructure of Spectrum Net and Orbitel.

A few days ago the deal was officially approved by the Commission for Protection of competition (CPC). The initial sales-purchase contract was signed in November 2009. Aim and anticipated result of the integration process between Spectrum Net and in 2010 is revenue of over 20 mln. EUR and achievement of EBITDA amounting to 5 mln. EUR.

Spectrum Net JSC (www.spnet.net)

The internet-based telecommunication company holds 12 years of experience on the Bulgarian market. Spectrum Net provides integrated data, voice and virtual services to business segments, appreciated for their stability, efficiency and reliability. From early 2008, Spectrum Net enters the home users market as well, being the first company in Eastern Europe to invest in fiber-to-the-home (FTTH) connectivity. The PON (Passive Optical Network) technology - a unique for the Bulgarian market service - positions Spectrum Net as a technology leader in delivering the most reliable internet access, digital TV and fixed-line telephony.

The financial results of the company for 2009 show approximately 10 mln. EUR Revenue  and EUR 2.3 mln.of EBITDA.

Orbitel EAD
The Next Generation

Orbitel is a next generation telecommunication operator with national licenses for voice and data. The company provides converged telecommunication solutions in throughout Bulgaria - telephony, broadband internet, Virtual Private Networks. Orbitel portfolio is supplemented by a large set of value-added services such as website hosting, domain reservation, business e-mail accounts and technical consultancy.

Orbitel is among the pioneers on the Bulgarian telecommunication market established in 1997 the company becomes part of Deutsche Telekom in 2006 through Magyar Telekom upon its acquisition by Spectrum Net in January 2010.